Application Processing

DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Parts 516, 543, 545, 552, 556, 563

[No. 97-30]

RIN 1550-AA83

Application Processing

AGENCY: Office of Thrift Supervision, Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: As a part of its ongoing effort to review and streamline its

regulations, the Office of Thrift Supervision (OTS) is proposing to

revise its regulations governing the comment procedures for certain

specified applications and notices (collectively ``applications''). In

addition to reorganizing the regulations, the OTS proposes to amend the

existing procedures to expand the comment period on these applications,

prescribe the information that comments must contain in order to be

considered by the OTS in its evaluation of applications, and remove

existing provisions that require the OTS to conduct an oral argument on

applications under certain circumstances and replace these provisions

with discretionary conference procedures.

DATES: Comments must be received on or before June 9, 1997.

ADDRESSES: Send comments to Manager, Dissemination Branch, Records

Management and Information Policy, Office of Thrift Supervision, 1700 G

Street, NW., Washington, D.C. 20552, Attention Docket No. 97-30. These

submissions may be hand-delivered to 1700 G Street, NW., from 9:00 a.m.

to 5:00 p.m. on business days; they may be sent by facsimile

transmission to FAX Number (202) 906-7755; or they may be sent by e-

mail: [email protected]. Those commenting by e-mail should

include their name and telephone number. Comments will be available for

inspection at 1700 G Street, NW., from 9:00 a.m. until 4:00 p.m. on

business days.

FOR FURTHER INFORMATION CONTACT: Catherine Shepard, Senior Attorney,

Regulations and Legislation Division, (202) 906-7275, Kevin Corcoran,

Assistant Chief Counsel, Business Transactions Division, (202) 906-

6962, Office of Chief Counsel; or Diana L. Garmus, Director, Corporate

Activities Division, (202) 906-5683, Office of Thrift Supervision, 1700

G Street NW., Washington, D.C. 20552.

SUPPLEMENTARY INFORMATION:

I. Background

OTS regulations governing applications for permission to organize a

federal stock or mutual savings association, to establish or relocate a

branch office of a federal savings association, and to engage in a

transaction that is subject to the Bank Merger Act require applicants

to follow the public comment and review procedures at 12 CFR 543.2 (e)

and (f).

Currently, Sec. 543.2 provides an opportunity for the public to

submit communications in favor or in protest of applications, and

permits the applicant to respond to any protest. Where a protest is

timely submitted, meets specified criteria, and includes a request for

oral argument, or if an applicant requests an oral argument, the

regulation requires the OTS to conduct an oral argument on the merits

of the application. The OTS may also hold an oral argument in the

absence of any specific request, if it determines that additional

proceedings are desirable.

Today, the OTS is proposing to revise these procedures. The

proposed revisions, discussed more fully below, would consolidate the

public comment procedures for the cited applications. The proposal

would also expand existing public comment periods, prescribe the

information that a comment must contain to be considered in the

evaluation of applications, and delete existing provisions requiring

the OTS to conduct an oral argument on applications under certain

circumstances and replace these provisions with discretionary

conference procedures. The OTS believes that these changes will make

the application processing procedures easier to understand and apply.

Additionally, the proposed discretionary conference procedures will

conform OTS regulations more closely to those of the other federal

banking agencies, in accordance with

[[Page 17111]]

section 303 of the Riegle Community Development and Regulatory

Improvement Act of 1994.

II. Description of the Proposed Rule

The OTS proposes to relocate and revise the public comment and

related procedures for the applications described above. Currently,

these procedures may be found in 12 CFR 543.2, which governs

applications to organize federal mutual associations. The proposed rule

would relocate these provisions to 12 CFR Part 516, which prescribes

application processing guidelines and procedures. This relocation

should make it easier for applicants and others to find relevant

regulations and to determine what procedures must be followed. The

provisions of the revised section are discussed more fully below.

Comment Procedure--Proposed Sec. 516.5(a)(1)

Under this proposed paragraph, where a regulation incorporates the

procedures set forth in Sec. 516.5, public comments may be submitted

only as provided by Sec. 516.5(a), or as otherwise requested by the

OTS. The proposed rule would further provide that the term ``comment''

includes any written submission that favors or opposes the application.

Comment Period--Proposed Sec. 516.5(a)(2)

Under current Sec. 543.2(e), anyone may submit a communication in

favor or protest of an application to the OTS within 10 days of

publication of a public notice of the filing of an application. This

time period may be extended to 17 days after publication, if a request

for extension is filed within the 10-day period. Applicants are

permitted to file an answer to any protest until 10 days after the date

for filing of such public comments.

The OTS believes that a longer comment period, without an automatic

extension, would be less confusing and more workable. Accordingly, the

proposed rule would extend the comment period to 25 days and would

delete the automatic 7-day extension period. The OTS may still grant

extensions on a case-by-case basis, where a comment addresses a

significant regulatory concern and the commenter shows good cause why

it was unable to submit the comment within the 25-day comment period.

The length of any extension will also be determined on a case-by-case

basis.

The proposed rule eliminates provisions permitting the applicant to

file an answer to public comments within ten days of the close of the

public comment period. The OTS will generally provide an appropriate

opportunity for an applicant to respond to relevant comments by

forwarding these comments to the applicant and requesting a response.

Comment Content Requirements--Proposed Sec. 516.5(a)(3)

Under the existing rules, a protest is considered substantial if it

is submitted in writing within the comment period, and states a reason

for the protest that is consistent with one of the regulatory bases for

denying an application. Additionally, a substantial protest must

include: (i) A summary of the reasons for the protest; (ii) the

specific matters in the application to which the protestant objects and

the reasons for each objection; (iii) facts supporting the protest,

including relevant economic or financial data; and (iv) any adverse

effects on the protestant that may result from approval of the

application. 12 CFR 543.2(e) (2) and (4).

Under the current rules, the term ``substantial'' serves a

ministerial purpose. It simply serves as a means of separating comments

that contain the required information (and, thus, may serve as the

basis for a request for an oral argument) from those that do not.

Unfortunately, some have misconstrued OTS findings that a comment is

substantial as an indication that the OTS has evaluated the substance

of the comment and has concluded that the comment is meritorious.

The proposed rule would remove the concept of a substantial

protest. Instead, the rule merely describes what a comment must include

to be considered by the OTS in the review of an application. Under the

proposed rule, a comment must recite all relevant facts, including any

economic or financial data, supporting the commenter's position.

Comments in opposition must address at least one of the regulatory

bases for denial, as set forth in the applicable regulations, recite

relevant facts and supporting data addressing these bases, and address

any adverse effects on the commenter or the community that may result

from the approval of the application. This approach should make the

drafting and review of comments more straightforward and less

burdensome.

Conferences--Proposed Sec. 516.5(b)(1)

Under existing rules, the OTS must conduct an oral argument if the

applicant or anyone filing a substantial protest makes a timely request

for the argument. At the oral argument, the parties may participate in

person or through a designated representative. A transcript of the

argument is made and included in the application file. See 12 CFR

543.2(f).

Oral arguments may assist in the disposition of issues raised by an

application. These additional proceedings, however, are not necessary

in every case, and can delay the application process without

substantially enhancing the quality of the information available to

evaluate the application.

Under the current rules, where a substantial protest is filed with

a request for an oral argument, the OTS must, by regulation, hold an

oral argument. Comparable regulations of the other federal banking

agencies provide these regulators with greater flexibility. Instead of

mandating additional proceedings at the request of the parties, these

rules provide the agencies with discretion to conduct additional

proceedings if the agency concludes that the proceedings would assist

the decisionmaking process.1

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\1\ Currently, the OCC will generally grant a hearing request

``only if the OCC determines that written submissions would be

inadequate or that a hearing would otherwise benefit the

decisionmaking process. * * * [or] concludes that the hearing would

be in the public interest.'' 61 FR 60342, 60365 (Nov. 27, 1996) (to

be codified at 12 CFR 5.11). The FDIC arranges informal and formal

hearings at its own discretion. 12 CFR 303.6(h) (1996). The FRB may

hold a private or public meeting when ``appropriate.'' 12 CFR 262.25

(c) and (d) (1996).

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Consistent with the rules of the other federal banking agencies,

OTS's proposed rule would provide for additional proceedings only where

the OTS determines that such proceedings would assist in the

disposition of the application or would assist in the resolution of any

issues raised by the application.

Instead of mandating specific procedures in the form of an oral

argument, the proposed rule permits the OTS to arrange a conference

between the applicant, commenters, and others. The rule does not

prescribe procedures for the conference. Rather, it permits the OTS to

select the procedure appropriate to the application on a case-by-case

basis. For example, the OTS may determine, based on the facts or issues

raised with regard to a particular application, that it should conduct

a transcribed conference consisting of oral argument. For other

applications, the OTS may decide to use very informal procedures, such

as a conference telephone call. The proposed rule requires the OTS to

provide an applicant and commenters with at least 10 days advance

notice of the time,

[[Page 17112]]

location and procedures to be followed at any conference.

The OTS believes that these changes will improve the public comment

process and will align its regulation more closely with the regulations

of the other federal banking agencies.

In the past, participants in the application comment process have

suggested that OTS should be required to distribute a document

addressing the issues raised in the comments or at the oral argument.

The OTS does not distribute such documents. The only document that the

OTS routinely issues that may refer to the comments is the order or

decision letter on the application.

Application Time Frames--Proposed Sec. 516.5(b)(2)

The proposed rule would provide that applicable time periods for

automatic approval of the application will be suspended if the OTS has

notified the applicant that it intends to hold a conference.2

Applicants are encouraged to arrange meetings with commenters at any

time, independent of OTS involvement. Such meetings will not, however,

suspend the time period for automatic approval.

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\2\ This requirement is currently found at 12 CFR 516.2(c)(6).

Since the proposed rule would include this provision at

Sec. 516.5(b)(2), Sec. 516.2(c)(6) would be deleted. We note that

the OTS also may extend the time for review under 12 CFR 516.2 (e)

and (f).

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Conforming Revisions

The proposed rule would include conforming revisions to various

other regulations. These changes are summarized below.

Section 543.2 would be revised to reflect the relocation of the

public comment procedures to Part 516. In addition, the public notice

procedures at paragraph (d)(1) would be revised to require an applicant

to publish the notice of the filing of an application for permission to

organize no earlier than three days before and no later than the date

of filing of the application. Paragraphs (c) and (d)(4) would be

revised to reflect the fact that applications will no longer be filed

before the publication of the public notice. Paragraph (d)(3) would be

revised to delete the requirement that OTS must provide a notice of the

filing of an application to persons who have filed a request for such

notice. This section is duplicative of the requirement set forth at

Sec. 563e.6. Currently, 543.2(d)(3) also requires OTS to notify the

state official who supervises savings associations in the state where

the new association will be located. This notification requirement

would be retained.

Paragraph (h)(1) would be revised to clarify that public notice and

comment procedures, conference procedures, and approval conditions

otherwise applicable to applications to organize federal associations

would not apply to applications to organize interim federal

associations. Applications that accompany the organization of the

federal interim association, for example, merger applications or

holding company applications, would continue to be subject to the

requirements set forth under the applicable merger or holding company

regulations. A similar revision would be made to section 552.2-2(a),

which governs applications to organize interim federal stock savings

associations.

Section 545.92 governs the establishment of branch offices by

federal associations. This section currently incorporates the comment

and oral argument procedures at Sec. 543.2 (e) and (f). It also cross-

references additional procedures from Sec. 543.2 (c) and (d) that

address the amendment of applications, the publication of public

notices, and public inspection procedures. Rather than require the

reader to refer to two different regulations to determine the

procedures that apply to branch office applications, proposed

Sec. 545.92 would refer to the new comment procedures at Sec. 516.5,

and would restate in full appropriate additional procedures contained

in existing Sec. 543.2 (c) and (d).

The current procedures for branch applications that are subject to

standard treatment under Sec. 545.92 require the publication of a

public notice within 10 days after OTS notifies the association that

the application is complete. These procedures also state that such

applications may, under certain circumstances, be deemed to be approved

within 30 days of this OTS notification. Because these procedures would

not accommodate the proposed 25-day public comment period, the OTS

proposes to require the savings association to publish the public

notice of all branch applications or notices no earlier than three days

before and no later than the date of the filing of the application.

Section 545.95 addresses changes of permanent locations and

redesignations of home and branch offices of federal associations. The

current rule requires an applicant to post a notice of the application

for 17 days from the date of publication of the newspaper notice--a

period that is equal to the extended comment period under current 12

CFR 543.2(e)(1). The proposed rule would expand the time period for

posting to 25 days to more closely track the revised comment period.

The proposed rule would also update existing cross-references to

Sec. 545.92 procedures.

Section 552.2-1 governs procedures for the organization of federal

stock associations. Currently, this regulation incorporates

Sec. 543.2(a) through (f) by reference. Rather than refer the reader to

two regulations to determine the proper procedures for these

applications, proposed Sec. 552.2-1 would refer to the new comment

procedures at Sec. 516.5, and would restate in full any appropriate

additional procedures contained at existing Sec. 543.2(a) through (d).

As in Sec. 543.2, the public notice procedures contained in this

section would be revised to require an applicant to publish notice of

the filing of the application to organize no earlier than three days

before, and no later than the date of filing of the application.

Sections 556.5 (policy statement on branching by federal savings

associations) and 563.22 (merger consolidation, purchase or sale of

assets, or assumption of liabilities) would be revised to include

appropriate citations to the new comment procedures at Sec. 516.5,

rather than the existing procedures at Sec. 543.2.

The OTS invites comment on all aspects of the proposal.

III. Executive Order 12866

The Director of the OTS has determined that this proposed rule does

not constitute a ``significant regulatory action'' for the purposes of

Executive Order 12866.

IV. Regulatory Flexibility Act Analysis

Pursuant to section 605(b) of the Regulatory Flexibility Act, the

OTS certifies that this proposed rule will not have a significant

impact on a substantial number of small entities. The proposed rule

should enable the OTS to process applications received from all

applicants, including small savings associations, and other small

businesses, more expeditiously. It also allows all entities, including

small entities, a longer period in which to submit comments on

applications filed by savings associations.

V. Paperwork Reduction Act of 1995

The information collection requirements contained in this rule are

found at 12 CFR 516.5, 543.2, 545.92, 545.95, 552.2-1, and 563.22. All

of the collections of information, except those found in Sec. 516.5,

have been previously approved by the Office of Management and Budget

and the burden under them remains unchanged under this rule

[[Page 17113]]

(OMB Control Nos. 1550-0005, 1550-0006, and 1550-0016). The

requirements in new Sec. 516.5 were previously found in several of the

sections mentioned above. New Sec. 516.5 does not add any additional

burden and will be added to the approved packages under OMB Control

Nos. 1550-0005, 1550-0006, 1550-0015 and 1550-0032 by inventory

correction worksheet at the final rule stage.

Comments on all aspects of the information collections should be

sent to the Office of Management and Budget, Paperwork Reduction

Project (1550), Washington, D.C. 20503 with copies to the OTS, 1700 G

Street, NW., Washington, D.C. 20552.

The OTS invites comments on:

(1) Whether the collections of information are necessary for the

proper performance of the agency's functions, including whether the

information has practical utility;

(2) The accuracy of the agency's estimate of the burden of the

information collections;

(3) Ways to enhance the quality, utility, and clarity of the

information to be collected; and

(4) Ways to minimize the burden of the information collection

including the use of automated collection techniques or other forms of

information technology.

Respondents/recordkeepers are not required to respond to the

collections of information unless they display a currently valid OMB

control number.

VI. Unfunded Mandates Act of 1995

Section 202 of the Unfunded Mandates Reform Act of 1995, Pub. L.

104-4 (Unfunded Mandates Act), requires that an agency prepare a

budgetary impact statement before promulgating a rule that includes a

federal mandate that may result in expenditure by state, local, and

tribal governments, in the aggregate, or by the private sector, of $100

million or more in any one year. If a budgetary impact statement is

required, section 205 of the Unfunded Mandates Act also requires an

agency to identify and consider a reasonable number of regulatory

alternatives before promulgating a rule. As discussed in the preamble,

this proposed rule simplifies existing procedures and should reduce

regulatory burden. The OTS has determined that the proposed rule will

not result in expenditures by state, local or tribal governments or by

the private sector of $100 million or more. Accordingly, this

rulemaking is not subject to section 202 of the Unfunded Mandates Act.

List of Subjects

12 CFR Part 516

Administrative practice and procedure, Reporting and recordkeeping

requirements, Savings associations.

12 CFR Part 543

Reporting and recordkeeping requirements, Savings associations.

12 CFR Part 545

Accounting, Consumer protection, Credit, Electronic funds

transfers, Investments, Reporting and recordkeeping requirements,

Savings associations.

12 CFR Part 552

Reporting and recordkeeping requirements, Savings associations,

Securities.

12 CFR Part 556

Savings associations.

12 CFR Part 563

Accounting, Advertising, Crime, Currency, Investments, Reporting

and recordkeeping requirements, Savings associations, Securities,

Surety bonds.

Accordingly, the Office of Thrift Supervision proposes to amend

title 12, chapter V, of the Code of Federal Regulations as set forth

below.

PART 516--APPLICATIONS PROCESSING GUIDELINES AND PROCEDURES

1. The authority citation for part 516 is revised to read as

follows:

Authority: 5 U.S.C. 552, 559; 12 U.S.C. 1462a, 1463, 1464, 2901

et seq.

Sec. 516.2 [Amended]

2. Section 516.2(c)(6) is removed and reserved.

3. Section 516.5 is added to read as follows:

Sec. 516.5 Comment procedures.

(a) Comments--(1) General. If a regulation incorporates the

procedures set forth in this section, public comments in connection

with an application or notice (collectively referred to as

applications) shall be submitted only as provided in this paragraph

(a), or as otherwise requested by the OTS. A comment includes any

written submission in favor of, or in opposition to, the application.

(2) Submission. Any person may file a written comment with the OTS

within 25 days after an application is published for public comment.

The OTS will not consider any comment received after the 25-day comment

period, unless the commenter demonstrates good cause why it was unable

to submit a timely comment, and the OTS concludes that the comment

addresses a significant regulatory concern and will assist the agency

in the disposition of the application.

(3) Content. To be considered by the OTS, a comment must recite all

relevant facts, including any economic or financial data, supporting

the commenter's position. Comments in opposition must address at least

one of the regulatory bases for denial, as set forth in the applicable

regulations, recite relevant facts and supporting data addressing these

relevant bases, and address any adverse effects on the commenter or the

community that may result from the approval of the application.

(b) Conference. (1) The OTS may arrange a conference between the

applicant commenter(s), and other persons, if the OTS concludes that a

conference will assist in the disposition of the application or in the

resolution of any issues raised by the application. The OTS must

provide the applicant and commenter(s) with at least 10 days notice of

the time, location, and procedures to be followed at the conference.

(2) Application time frames. If the OTS has timely notified the

applicant that it intends to hold a conference under paragraph (b) of

this section, the time period for automatic approval of the application

under Sec. 516.2 shall be temporarily suspended until a record is

developed sufficient to support a determination on the issues raised in

the comments.

PART 543--INCORPORATION, ORGANIZATION, AND CONVERSION OF FEDERAL

MUTUAL ASSOCIATIONS

4. The authority citation for part 543 continues to read as

follows:

Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 2901 et

seq.

5. In Sec. 543.2, paragraph (c) is removed and reserved and

paragraphs (d)(1), (d)(3), (d)(4), (e), (f) and (h)(1) are revised to

read as follows:

Sec. 543.2 Application for permission to organize.

* * * * *

(d) * * * (1) The applicant shall publish a public notice of the

application to organize no earlier than three days before and no later

than the date of filing of the application. The applicant shall publish

the notice in a newspaper printed in the English language and having a

general circulation in the community in which

[[Page 17114]]

the home office of the new association is to be located. If the OTS

determines that the primary language of a significant number of adult

residents of the community is a language other than English, the OTS

may require that notice also be given simultaneously in the appropriate

language(s).

* * * * *

(3) The OTS shall give notice of the application to the State

official who supervises savings associations in the State in which the

new association is to be located.

(4) The application and all related communications may be inspected

by any person at the Regional Office during regular business hours,

unless such information is exempt from public disclosure.

(e) Submission of comments. Comments on the application shall be

submitted in accordance with the procedures specified in Sec. 516.5(a)

of this chapter.

(f) Conference procedures. The OTS may arrange a conference in

accordance with Sec. 516.5(b) of this chapter.

* * * * *

(h) * * * (1) Applications for permission to organize an interim

Federal savings association are not subject to public notice and

comment procedures, and conference procedures, and are not subject to

paragraph (g)(3) of this section.

* * * * *

PART 545--OPERATIONS

6. The authority citation for part 545 continues to read as

follows:

Authority: 12 U.S.C. 1462a, 1463, 1464, 1828.

7. In Sec. 545.92, paragraphs (d), (e) heading, (e)(2), and (f) are

revised, and paragraphs (i) and (j) are removed to read as follows:

Sec. 545.92 Branch offices.

* * * * *

(d) Processing of applications/notices. Processing of applications

and notices shall be subject to the following procedures:

(1) Publication. (i) A Federal savings association shall publish a

public notice of the branch application or notice no earlier than three

days before and no later than the date of the filing of the application

or notice. The applicant shall publish the notice in a newspaper

printed in the English language and having a general circulation in the

community in which the home office of the association is located and in

the community to be served by the branch office. If the OTS determines

that the primary language of a significant number of adult residents of

either community is a language other than English, the OTS may require

that notice also be given simultaneously in the appropriate language.

(ii) The public notice shall be in substantially the following

form:

NOTICE OF ESTABLISHMENT OF A BRANCH OFFICE OR CHANGE OF LOCATION OF AN

OFFICE

This is to inform you that [Association Corporate Title, City,

Town, State and Zip Code] is filing [an] [application/notice] with

the Office of Thrift Supervision (``OTS'') for permission to

establish a branch office to be located [address of branch office].

This [application/notice] is filed under OTS regulations at 12 CFR

545.92 or 12 CFR 545.95.

Anyone may comment in favor of, or in opposition to, the

[application/notice] within 25 days of the publication of this

notice. To be considered by the OTS, your comments must be filed in

writing within this time period. Your comment must recite all

relevant facts, including any economic or financial data, supporting

your position. If you submit a comment in opposition, you must

address at least one of the regulatory bases for denial, as set

forth in the applicable regulations, recite relevant facts and

supporting data addressing these bases, and address any adverse

effects on you or the community that may result from the approval of

the [application/notice].

You must send three copies of your comment to the Regional

Director, [insert name and address of the OTS Regional Office where

the application/notice is filed]. You may view the [application/

notice] and all comments filed at the OTS Regional Office, except to

the extent that these materials may be exempt by law from

disclosure. If you have any questions concerning these procedures,

contact the OTS Regional Office.

(iii) Promptly after publication of the public notice, the savings

association shall transmit copies of the public notice and publisher's

affidavit of publication to the OTS.

(iv) The application or notice and all related communications may

be inspected by any person at the Regional Office during regular

business hours, unless such information is exempt from public

disclosure.

(2) Submission of application or notice. A Federal savings

association must comply with Sec. 556.5 of this chapter and shall file

the application required under Sec. 516.3(b)(2) of this chapter or the

notice required under Sec. 516.3(a) of this chapter within three days

of the publication of the public notice under paragraph (d)(1) of this

section.

(3) Submission of comments. Comments on the application or notice

shall be submitted in accordance with the procedures specified in

Sec. 516.5(a) of this chapter.

(4) Conference procedures. The OTS may arrange a conference in

accordance with Sec. 516.5(b) of this chapter.

(e) Approval of branch application. * * *

(2) An application shall be deemed to be approved 30 days after

notification that the application is complete, unless the OTS notifies

the savings association that it intends to hold a conference under the

procedures described in Sec. 516.5(b) of this chapter, or that the OTS

objects to the application on the grounds set forth under paragraph

(e)(1) of this section.

(f) Approval of branch notice. A notice filed by a Federal savings

association that qualifies for expedited treatment shall be deemed to

be approved 30 days after its filing with the OTS, unless the OTS

notifies the savings association that it intends to hold a conference

under the procedures described in Sec. 516.5(b) of this chapter; the

OTS objects to the application on the grounds set forth in paragraph

(e)(1) of this section; or the OTS determines to process the filing as

an application under Sec. 516.3(a)(3) of this chapter. If the OTS

notifies the savings association that it intends to hold a conference,

the savings association may not open a branch until the OTS provides a

notification of its approval.

* * * * *

8. In Sec. 545.95, paragraphs (a) and (b)(1)(ii) are revised to

read as follows:

Sec. 545.95 Change of office location and redesignation of offices.

(a) Eligibility. A Federal savings association may change the

permanent location of its home office or any approved branch office, or

redesignate a home or branch office subject to the appropriate

expedited or standard treatment procedures for establishing a branch

office set forth in Sec. 545.92 of this part.

(b) * * *

(1) * * *

(ii) The applicant shall post notice of the application for 25 days

from the date of first publication in a prominent location in the

office to be closed or redesignated.

* * * * *

PART 552--INCORPORATION, ORGANIZATION, AND CONVERSION OF FEDERAL

STOCK ASSOCIATIONS

9. The authority citation for part 552 continues to read as

follows:

Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a.

10. Section 552.2-1 is amended by revising paragraph (a) to read as

follows:

[[Page 17115]]

Sec. 552.2-1 Procedure for organization of Federal stock association.

(a) Application for permission to organize. Applicants may file an

application for permission to organize a Federal stock association in

accordance with this section. Recommendations by employees of the OTS

regarding applications for permission to organize are privileged,

confidential, and subject to Sec. 510.5 (b) and (c) of this chapter.

The processing of an application under this section shall be subject to

the following procedures:

(1) Publication. (i) The applicant shall publish a public notice of

the application no earlier than three days before and no later than the

date of filing of the application. The applicant shall publish the

notice in a newspaper printed in the English language and having a

general circulation in the community in which the home office of the

new association is to be located. If the OTS determines that the

primary language of a significant number of adult residents of either

community is a language other than English, the OTS may require that

notice also be given simultaneously in the appropriate language(s).

(ii) Promptly after publication of the public notice, the applicant

shall transmit copies of the public notice and publisher's affidavit of

publication to the OTS in the same manner as the original filing.

(iii) The application and all related communications may be

inspected by any person at the Regional Office during regular business

hours, unless such information is exempt from public disclosure.

(2) Notification to interested parties. The OTS shall give notice

of the application to the State official who supervises savings

associations in the State in which the new association is to be

located.

(3) Submission of comments. Comments on the application shall be

submitted in accordance with the procedures specified in Sec. 516.5(a)

of this chapter.

(4) Conference procedures. The OTS may arrange a conference in

accordance with Sec. 516.5(b) of this chapter.

* * * * *

11. Section 552.2-2 is amended by revising paragraph (a) to read as

follows:

Sec. 552.2-2 Procedures for organization of interim Federal stock

association.

(a) Applications for permission to organize an interim Federal

savings association are not subject to public notice and comment

procedures, and conference procedures, and are not subject to

Sec. 552.2-1(b)(3) of this part.

* * * * *

PART 556--STATEMENTS OF POLICY

12. The authority citation for part 556 continues to read as

follows:

Authority: 5 U.S.C. 552, 559; 12 U.S.C. 1464, 1701j-3; 15 U.S.C.

1693-1693r.

13. Section 556.5 is amended by revising paragraph (c)(4) to read

as follows:

Sec. 556.5 Branching by Federal savings associations.

* * * * *

(c) * * *

(4) Comment procedures. Comments on applications for branches must

be submitted in writing and factually documented. Comment procedures

are set forth in Sec. 516.5 of this chapter, part 563e of this chapter,

the OTS Application Processing Handbook, and other supervisory guidance

issued by the OTS.

* * * * *

PART 563--OPERATIONS

14. The authority citation for part 563 continues to read as

follows:

Authority: 12 U.S.C. 375b, 1462, 1462a, 1463, 1464, 1467a, 1468,

1817, 1820, 1828, 3806; 42 U.S.C. 4106.

15. Section 563.22 is amended by revising paragraphs (e)(4) and

(f)(3) to read as follows:

Sec. 563.22 Merger, consolidation, purchase or sale of assets, or

assumption of liabilities.

* * * * *

(e) * * *

(4) Applications submitted under paragraph (a) of this section

shall be subject to the comment procedures specified in Sec. 516.5(a)

of this chapter, except that comments may be submitted at any time

during the period described in paragraph (e)(2) of this section. The

OTS may arrange a conference in accordance with Sec. 516.5(b) of this

chapter.

* * * * *

(f) * * *

(3) The OTS has notified the savings association that it intends to

hold a conference as described in Sec. 516.5(b) of this chapter;

* * * * *

Dated: March 31, 1997.

By the Office of Thrift Supervision.

Nicolas P. Retsinas,

Director.

[FR Doc. 97-8815 Filed 4-8-97; 8:45 am]

BILLING CODE 6720-01-P